Nama : Adam Khalid Harkansas

NIM : 170513624010
Prodi : S1 PTO
Offering : B-1

Indonesia Needs to Accelerate Manufacturing Industries for Faing Global Competition

The global market is a policy whereby the Government does not discriminate against
imports and disrupt exports. Free market policy does not mean the government abandoned all
controls and taxes on imports and exports, but rather that refrain from actions specifically
designed to impede trade, such as tariff barriers, currency restrictions, and import quotas.
The global market is an attractive strategic choice for the company, but it is not the
only strategic resource. In fact, for many companies, capable of competing successfully in a
global marketplace, it is important for them to remain attentive to the domestic market.
Thus, companies around the world are challenged to become more strategically
competitive in their domestic markets. However, since the benchmarks to compete
strategically with global standards, firms that enhance the ability for domestic competition
simultaneously also increase their global competitiveness.
Strategy to Face Global Market Competition
Product Selection
There are three categories of products in the local to global continuum: local products,
international products, and global products.
Local Products are products that are within the context of a particular company. International
Products are products that are deemed to have the potential to expand the national market.
Global products are products designed to meet the needs of the global market.
In choosing products to be marketed to global markets, you should choose the following
products:
 Products that can compete in quality.
 Increase product differentiation by adding excellence to a product, or awakening
awareness to existing advantages and benefits. Emphasize the risk of low prices.
 Selecting products that are The First, The Best, and
 Product Discovery. If potential customers are unable to afford a product, the strategy
shown is the invention. In other words, a company may need to develop a whole new
product design to satisfy needs and wants at a cost reachable to potential customers.
Price War
An effective pricing strategy for the international market is a strategy that is influenced by
competition and cost in making decisions at prices. The four steps that determine the base
price:
 Establish price elasticity of demand.
 Estimate the fixed and variable costs of the manufacturing process with the projected
sales volume. The cost of product adaptation should be taken into account.
 Set all costs associated with the marketing program.
 Select the price that gives the highest contribution margin.
Of the four pricing above, it can be used as a reference in pricing in global market
competition. In addition, other strategies that can welcome competition in the field of prices
are:
 Use the Dumping system, offer everyday low prices or sell products lower than those
normally introduced on the same product in the domestic market or in the country of
origin. Show that Indonesia has a competitive advantage in the eyes of competitors
(cost advantage)
 Complex Prices. Offer bundled prices, two-part pricing, quantity discounts,
promotional pricing, or loyalty programs for some products, "buy two get one".
 Adjust regular product prices in response to competitor price changes or other
potentials to enter the market.
Developing Human Capital
Refers to the knowledge and ability of the company's workforce. In other words,
employees are viewed as a source of capital. One means of developing human capital is
training and development programs.
Development of Human Resources (HR) is an urgent thing. Quality of human
resources related to the product produced, if produced by qualified human resources, then the
resulting product is a quality product.
Moving, Caring, and Inovating.
Moving is the company's ability to adapt between consumers' expectations of a product
and its ability to fulfill it. The ability of companies to meet the demands of consumers who
will win in the competition.
In realizing all these consumers' keiginan, in order to succeed well, moving must be
accompanied by caring and inovating. The meaning of caring is a concern to the consumer. In
this caring stage the company seeks to understand as well as possible what is needed by
consumers.
To realize the consumer desire, innovation in the field of products include the
completeness of the product and also the latest technology. This innovation will only work in
the market if the caring process goes well. With this loyalty the business competition
becomes less severe, just how we keep the customers.
Marketing strategy
Marketing Communications (Advertising)
Advertising can be defined as sponsored communication, placed in mass media for a fee.
Strategies in advertising a product can be done by:
 Use effective and creative advertising.
Since the product is often at different stages in its life cycle in various
national markets, and there are fundamental cultural, social and economic differences
in the market, the most effective appeal to a product may vary from one market to
another.
 Art Direction.
It pays attention to the visual presentation (body language) of printed and
broadcast advertising.
 Only short dialogue or narration used in television advertisements, with minimal
explanatory content. The more one speaks, the less one believes.
 Humor is used to create a bond of shared feelings.
Location Excellence
Companies establish facilities in various countries to reduce the basic cost of goods or
services produced. For example, they may have easier access to cheap labor costs, energy and
other natural resources.
Other location advantages include access to important equipment or resources and to
customers.
Alliance Strategy
Alliance strategies and cooperation agreements are a useful and meaningful force for
companies in the same industry to compete on a global scale while maintaining their
freedom. Prepare the cooperation of domestic companies in foreign companies with a mature
strategy, for the following reasons:
 To seize competition in production or marketing, a fall in prices can be a difference,
and it gives the company deliver at a competitive price.
 To fill gaps in the skills and technical knowledge of the local market (buying habits
and product selection from consumers, local customs and so on).
Cooperation between a local company and a foreign company that has its advantages,
however, the collaboration between non-bound companies, with different motives and
possibly with conflicting goals, is not easy. Without adding strength, having cold
relationships and expecting to make a profit will never come true.
Take advantage of the possibility of cooperation. Form a strategic partnership by offering
exclusive cooperation with suppliers, resellers, or service providers related to your business.
Market Marketing Strategy
The goal of a market marketing strategy is to achieve a high reward rate while
maintaining a low level of resource commitment. Companies that follow this strategy choose
more readily available target markets while minimizing risk and investment. The market
entry method is more frequent by exporting or licensing.
The success of this strategy is highly dependent on the choice of agents, distributors,
or licensees. Marketing and distribution responsibilities fall into the hands of overseas
partners. The Company will attempt to set a high price to secure a high margin.
Looking at the Competition as an Energy
The word COMPETITION is widely interpreted as a drama that always gives birth to
"Winners" as well as printing a bunch of "Losers". As a consequence, the "Winner" will be
interpreted as a towering figure at the height of its glory, to be seen with a face lifted up by
the "Invincible". It is sad if the universe is finally compartmentalized as a winner-looser.
God the Creator of the universe has called for "Race in goodness". This means that
the true nature of the competition will be much deeper than just winning. There is enormous
positive energy, which contains millions of benefits, contained by this drama called
COMPETITION.
Competition can be defined as a Whirlwind. Where the "winner" is the center of its
orbit, while the "other participants" will revolve around it. There is no term "lose-win" here,
because the obligation of the "winner" is to share his knowledge, share his experience, spread
his positive energy, to anyone who orbits around him. While the obligation of "other
participants" is to open up to absorb energy, absorb knowledge, absorb the experience of the
orbital center, the "winner". This is a form of SYNERGY.
With that view, the State of Indonesia will be more prepared and optimistic in facing the
Global Market.